Saudi Arabia: Inflation plummets in July as VAT effect fades
Consumer prices increased 0.20% over the previous month in July, marginally stronger than June’s 0.15% rise. July’s print reflected higher prices for food, education and recreation and culture.
In July, inflation dipped to 0.4% from 6.2% in June. The stark fall in inflation was due to the fading impact of the value-added tax rate, which was increased from 5% to 15% back in July 2020. Meanwhile, annual average inflation decreased to 5.2% in July, down from 5.7% in the previous month.